Areas of liquidity interest & Impulse gaps

4 Mei 2018

XBTUSD | BTCUSD | BTCUSD | BTCUSD | BTCGBP | BTCEUR | BTCJPY

Impulse gaps - when price moves away with large volume and creates a tall candle, price creates a gap of untested areas which could be referred to as liquidity gap.
These liquidity gaps are caused from lack of actual liquidity, forcing price up into a substantial amount of liquidity, sometimes to areas where stops are above/below the initial impulse, this can cause a melting effect of low volume crawl into high volume jump - waterfalls and elevators.
Typically these gaps fill back in, they happen in every market and are good areas to consider taking profit or taking a position in as they're caught at the extremes of price rather than in the middle of a range. Stick to the trend and you can turn the same areas into areas to Dollar Cost Average.

Knowledge and understanding of how market makers function, the laissez faire market environment and risk management puts this as a primarily supply/demand analysis. Support and resistance helps by establishing long term liquidity areas. How I choose support is not from the highs or lows of price action, rather the close of a bullish candle in a bearish market and the close of a bearish candle within a bullish market.
If there is buying in a sellers market, this makes for genuine area of interest in a future bearish market, the opposite reasoning for a bullish one.
I don't use a traditional fib, instead I go by doubling hence 100%, 200%, 400%. What is similar is that I tend to use the lower fibonacci ratio as a guide as to areas of reversal as the 23.6% retracement can oftentimes be the area for which price finds support or resistance for a reversal. There's something about the power of 2 that works abnormally well.

4 Mei 2018

Catatan

OBV and RSI are used jointly with the Volume indicator to give a guide to the behaviour of the price action over the longer term. I find waiting for the OBV to bottom out, lower than the price action of the past gives some indication that distribution is occuring possibly leading to a continuation of a bullish market (green circles), without confirmation however (through testing price action in the opposite direction) this can't be of certainty on it's own.
RSI helps to determine whether the OBV is giving a false signal removing some of the noise associated with an indicator. The divergences appear one after another, bullish after bearish so don't stick to one side, try to watch both sides of the market gain and lose strength. Higher price action and lower high RSI = Bullish weakening, Lower price action and higher RSI = Bullish strengthening; during times of confluence higher highs and higher lows (or lower lows and lower lows) in both rsi and price action is continuing strength.
Volume is the main focus other than pure price action as this is the raw feel of the movement, when it begins to slow down to the point that it's flat, good chances are a breakout is going to happen in the future. Another key would be to look at the direction of purely buying or selling volume in the current trend, does it match the price action? If not the strength is falling off or a hidden strength is coming through.

I hope this helps to bring insight for followers who look at my work whether in chat or through ideas as to what I'm trying to convey and how my plan works.

15 Agu 2018

Catatan

29 Mar 2019

Catatan

3.2k hit December 2018. Possible low is in, range can be between 2.7k and 6k for many, many months. Maybe a 300 day sideways market from here on.

20 Feb 2020

Catatan

Keep pressing play and notice how the levels remain important into the future.